Tullau Pappen Ceases Production
News General news
The Tullau cardboard factory has closed permanently. The closure came as a surprise on October 27, 2026.
On Tuesday, October 27, 2026, production was completely halted at the Rosengarten-Tullau (Baden-Württemberg) and Trauchgau (Bavaria) locations after nearly 150 years of rich history. Approximately 90 employees immediately lost their jobs as a result of the sudden shutdown.
The company had filed for bankruptcy in early September 2026. The restructuring efforts and investor talks that were initiated ultimately failed due to immense back payments for European CO2 emission allowances—payments that had become unaffordable as a result of the bankruptcy.
The CO2 allowances were ultimately just the proverbial “final blow” that prevented a rescue. The Tullau Pappen Group was already in severe financial distress even before it actually filed for bankruptcy in September 2026. The production of solid and gray cardboard is extremely energy-intensive. The sharp rise in prices for electricity, gas, and oil had been placing a massive strain on the plants since the energy crisis. Alongside energy costs, prices for raw materials and labor costs also rose significantly.
The paper and cardboard industry is facing fierce international competition. Due to enormous price pressure, Tullau Pappen was only able to pass on a very limited portion of its skyrocketing production costs to customers. Higher prices would have immediately led to severe losses in sales volume and revenue. In 2024, a fire in a production facility caused massive property damage totaling approximately one million euros, which placed a heavy strain on the company’s financial reserves.
